Yr 11 Mock 1.1-1.4

Question 1

Factors of Production

Answer 1

What is needed to produce products and services.

Question 2

Factors of Production - Land

Answer 2

natural resources, renewable and non-renewable. e.g. Coal, wood, animals, mines, as well as actual land space

Question 3

Factors of Production - Labour

Answer 3

Work done by people to produce goods and services

Question 4

Factors of Production - Capital

Answer 4

Things that enable production. e.g. Factories, machines and schools

Question 5

What does the term “Enterprise” mean?

Answer 5

Someone who take risks to produce things using the other factors of production

Question 6

What does the term “Objectives”?

Answer 6

The specific goals set by a business to reach its aims

Question 7

Characteristics of an Entrepreneur

Answer 7

Motivated, risks-takers, organised, innovative

Question 8

Objectives of an Entrepreneur

Answer 8

Financial reward, independence, to fulfill a need for goods or services or have an interest in the area of business

Question 9

The Business Environment

Answer 9

All the factors, both internal and external that effect a business

Question 10

Raw Materials

Answer 10

Unprocessed resources from land

Question 11

Resources

Answer 11

Things that are used to produce goods and services

Question 12

Explain one opportunity that the introduction of new technology creates for a business.

Answer 12

P(oint): Improve Products.
B(ecause): Smaller, Faster, & Easier to Use. e.g. Phones.
L(ead to): Opportunity to Fulfil Developing Customer Wants.
T(erefore): High Chance of Generating Sales & Success.

Question 13

Explain one way in which a gap in the market creates a marketing opportunity

Answer 13

P: Gives an Opportunity to Fulfil that Gap.
B: Certain Want isn’t Being Fulfilled by Another Business.
L: Entrepreneur Taking that Risk.
T: Opportunity to Generate Sales & Achieve Success.

Question 14

Explain one reason why someone might set up their own business

Answer 14

P: Personal Satisfaction.
B: Success Generates Awards, Recognition & Profit.
L: Achievement.
T: Fulfilment.

Question 15

Describe why a business may find it difficult to add value to its products or services.

Answer 15

P: Costly.
B: Improve Quality with Higher Quality Raw Materials.
L: Increase in Variable Costs.
T: Lower Margin of Safety or Sales Depending on Whether Price Increases.

P: Time-Consuming.
B: Spend More Time on Service for Convenience.
L: Employees Working Longer Hours.
T: Cause Dissatisfaction & Increased Turnover.

Question 16

Which one of the following is most likely to be a reason why a business should try to add value to its products? Select one answer:
A - To increase the materials it buys
B - To add a USP
C - To differentiate its product
D - To improve its chances of survival in the long term

Answer 16

D.

A would increase costs.
B is a way of adding value not a reason.
C is a reason but this is done for long term survival.

Question 17

Which two of the following are key enterprise skills? Select two answers:
A - A willingness to take risks
B - A willingness to employ at least five workers
C - A willingness to take the initiative
D - A willingness to follow a course of study in business
E - The ability to raise finance

Answer 17

A & C

B isn’t general enough.
D it shows dedication which is the key skill.
E isn’t really a skill.

Question 18

State one way that a business could meet customer needs through providing high-quality products.

Answer 18

Products lasts longer.
Could be more comfortable.
More attractive.

Question 19

Which one the following is a reason why customer service is important to the success of a small business? Select one answer:
A - Customers are the one who add value
B - A small business wants to get repeat purchases
C - Customers will buy a product if the price is right
D - It has to meet legal requirements

Answer 19

B

A isn’t true.
C doesn’t relate to customer service.
D doesn’t relate to customer service.

Question 20

Discuss why a business may conduct extensive market research before it begins trading.

Answer 20

P: Identify gaps in the market.
B: Research shows market trends and outlines products currently sold.
L: Identifying & understanding customer needs.
T: Make an informed decision reducing money wastage.

P: Identify and understand competitors.
B: Research shows other market activity.
L: Informed product differentiation.
T: Competitive advantage increases success.

Question 21

Which one of the following would not be an appropriate method of market research for a new small business? Select one answer:
A - Employing a specialist market research company to carry out a survey of 10 000 people
B - Using published statistics about market trends
C - Asking customers to fill in a short questionnaire on the premises
D - Conducting an interview

Answer 21

A - Unlikely to get so many participants

Question 22

Define the term ‘market research’.

Answer 22

collecting information about the market or what customers want that might help a business to be more successful and spot gaps in the market.

Question 23

Give one way in which a business might collect quantitative market research data.

Answer 23

Surveys

Question 24

Explain one way in which market research data might benefit a business.

Answer 24

P: Informed decisions.
B: Fulfil customer wants.
L: Fulfilling demand reduces wastage.
T: High sales likelihood improves chances of success.

Question 25

Define the term ‘market segment’.

Answer 25

A group of consumers with similar characteristics and buying habits.

Question 26

Explain one reason why a business may choose to segment its market.

Answer 26

P: Meet specific customer needs.
B: Separates out target markets.
L: Increased customer satisfaction.
T: Build close customer relationships and repeat sales.

Question 27

State one possible method a business could use to differentiate its product.

Answer 27

Offering a lower price.
Offering higher quality.